Coordinating Minister Airlangga Encourages Entrepreneurs To Use Capital Market Funds Of IDR 180 Trillion

Coordinating Minister for Economic Affairs Airlangga Hartarto opens an initial share trading in 2021 at the IDX Building, Jakarta, Monday. (ANTARA / Citro Atmoko)

JAKARTA - Coordinating Minister (Menko) for the Economy Airlangga Hartarto encouraged a number of business actors to maximize the opportunity to raise funds through the capital market throughout 2021. He said that the estimated funds that would flood the financial sector reached IDR 150 trillion to IDR 180 trillion.

"We hope that this year many companies are looking for funds in the capital market even in the midst of a pandemic situation," he said when opening a trade on the Indonesia Stock Exchange (IDX), in Jakarta, Monday, January 4, as reported by Antara.

Airlangga added that one of the government's strategies to spur the activities of issuers in the capital market is to release Government Securities (SBN).

"Through SBN with a yield of around 3.64 percent, we want more IPOs [initial public offerings] or seek funds from the capital market," he added.

Through these efforts, he said, could help the process of Indonesia's economic recovery in line with reducing the risk of uncertainty on global financial markets.

"And the JCI is predicted to reach 6,800 or 7,000 by the end of December 2021. This is considering that on December 22 it touched 6,165 even though in the end it was slightly below 6,000," he said.

State Budget Assumptions for 2021

On the occasion, the Coordinating Minister for Airlangga also explained the assumptions regarding the use of the 2021 State Revenue and Expenditure Budget (APBN). One important reference is the issue of the rupiah exchange rate.

"In this year's APBN macro assumption, inflation is targeted to be 3 plus minus 1 percent and the exchange rate is IDR 14,600 per dollar," he said.

In addition, support through the National Economic Recovery Program (PEN) was also continued with a budget of IDR 372.3 trillion. Through this allocation of funds, the government aims to increase the people's hope for purchasing power.

Meanwhile, through the Job Creation Law, the government has set a target to accelerate the increase in employment and support the creation of ease of doing business or Ease of Doing Business (EoDB) for both national entrepreneurs, MSME entrepreneurs and investors. "The government has big goals by bringing 64 million informal sectors into transformation into the formal sector. Moreover, the capital market continues to open up to crowdfunding, we are sure they can enter the financial system more broadly," Airlangga concluded.